which speaker recomendations for this system...

Your system is pretty balanced. Have you thought about upgrading the electronics instead? What is your budget? Is music important to you? The Yamaha CD player could go and replace it with a DAC running off the DVD player for music.

I wouldn't recommend upgrading to a DAC for it. Granted, it would sound better, but the digital out for that model is 48.something (yes, NOT 44 and unfortunately not 96). If you were to modify the input, I'd shoot for a new CD player that does 24/96 HDCD (HDCD is AMAZING). I did add a Monarchy 24/96 DIP to reduce jitter, and I've found the bass to be more tonally accurate and a tad bit deeper. Not a bad $250 upgrade.

I always recommend better speakers to people. I own PSB Stratus Golds and have been auditioning speakers for the last 5-6 months. My electronics are better than yours (EAD Ovation/EAD PowerMaster 2000) and I still can't get the Golds to image right, even though I love their tonal quality. There are tons of better speakers out there to try, including Ariel, Revel, and B&W and many reviews. I strongly suggest you audition everything yourself - do NOT buy them if you haven't heard them. Then look for the desired model used.

You may want to consider maintaining your existing system, which is perfectly good at home theater and adding a new music system. I've been a complete digital nut, but I recently put my hands on a tube set-up and the sound is mind bending...

I'm currious...I'm looking at your system and would ilke to know what your complaints are? Why are you looking to upgrade? Are you not satisfied with the music sound reproduction, or is the movie playback not up to what you expect???
Anyway, I'd want to know what seeds of thought you have that are leading you to want to change. The speakers you have ought to yield you much better than average results, infact very good! They are the most important pieces in your equipment chain, for sure. I've sold these speakers,and know they do very well.
Your room/set-up is critical however (at least 50% of the sound), and must take care to set speakers properly in relation to seating, plus acoustical considerations and treatments.
How's your cabling? What are you using?..that makes a big difference as well. Also, power supply/conditioners/outlets.
Let me know. I've sold/bought/heard/used it all pretty much, and can help I think.
E. Alexander

Sell the Yamaha and buy a quality new 24 bit / 192 kHz "upsampling" CD player that also is able to decode HDCD discs.

I think Cary, Electrocompaniet, and Accuphase all produce good units that will do this.